A real estate professional suspects that a client is using the transaction to launder money but cannot definitively prove it. The transaction involves a legitimate $500,000 property purchase with proper documentation. What should the professional do?
Correct Answer
A) File a Suspicious Transaction Report with FINTRAC regardless of amount
FINTRAC regulations require real estate professionals to file a Suspicious Transaction Report whenever they have reasonable grounds to suspect money laundering, regardless of the transaction amount or documentation quality. The threshold for suspicion, not proof, triggers this reporting requirement.
Why This Is the Correct Answer
Under FINTRAC regulations, real estate professionals must file a Suspicious Transaction Report (STR) whenever they have reasonable grounds to suspect money laundering, regardless of transaction amount or documentation quality. The law requires reporting based on suspicion, not proof. Even with legitimate-appearing documentation, if the professional suspects laundering activity, they are legally obligated to report to FINTRAC. This protects both the professional and the financial system from potential criminal activity.
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Previous Question
A real estate professional notices that a client is using multiple bank drafts from different financial institutions for a single transaction and appears nervous when asked about the source of funds. What should the professional do?
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A real estate professional suspects that a client's funds may be proceeds of crime but the transaction appears otherwise legitimate. Under FINTRAC obligations, what records must be maintained regarding this suspicious transaction report?